FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of January 2008
Commission File Number 2 - 68279
RICOH COMPANY, LTD.
-----------------------------------------------
(Translation of Registrant's name into English)
13-1, Ginza 8-Chome, Chuo-ku, Tokyo 104-8222, Japan
---------------------------------------------------
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.)
Form 20-F X Form 40-F __
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): __ )
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): __ )
(Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934.)
Yes __ No X
(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82-__ )
- --------------------------------------------------------------------------------
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Ricoh Company, Ltd.
------------------------------
(Registrant)
By: /S/ Zenji Miura
------------------------------
Zenji Miura
Director, Chief Financial Officer
Corporate Executive Vice President
January 30, 2008
- --------------------------------------------------------------------------------
RICOH
January 30, 2008
QUARTERLY REPORT
Third Quarter Ended December 31, 2007
(Results for the Period from October 1, 2007 to December 31, 2007)
PERFORMANCE OUTLINE (CONSOLIDATED)
(1) Three Months Ended December 31, 2006 and 2007
(Billions of yen)
- ------------------------------------------------------------------------------------------
Three months ended Three months ended
December 31, 2006 December 31, 2007 Change
- ------------------------------------------------------------------------------------------
Domestic sales 236.8 244.6 3.3%
Overseas sales 268.8 307.3 14.3%
Net sales 505.7 552.0 9.2%
Gross profit 219.3 237.4 8.2%
Operating income 48.6 49.4 1.6%
Income before income taxes 48.7 49.0 0.5%
Net income 31.2 32.1 2.8%
- ------------------------------------------------------------------------------------------
Exchange rate (Yen/US$) 117.82 113.24 -4.58
Exchange rate (Yen/EURO) 151.92 163.96 12.04
- ------------------------------------------------------------------------------------------
Net income per share (yen) 42.83 44.01 1.18
Net income per share-diluted (yen) 42.66 42.84 0.18
- ------------------------------------------------------------------------------------------
Capital expenditures 17.6 18.1 0.5
Depreciation for tangible fixed assets 18.2 18.4 0.1
R&D expenditures 27.9 32.0 4.1
- ------------------------------------------------------------------------------------------
(2) Nine Months Ended December 31, 2006, 2007 and Year Ending March 31, 2008
(Billions of yen)
- --------------------------------------------------------------------------------------------------- ----------------------
Nine months ended Nine months ended Year ending
December 31, 2006 December 31, 2007 March 31, 2008
(Results) (Results) Change (Forecast) Change
- --------------------------------------------------------------------------------------------------- ----------------------
Domestic sales 729.3 749.0 2.7% 1,035.0 3.3%
Overseas sales 763.3 891.3 16.8% 1,215.0 13.9%
Net sales 1,492.6 1,640.4 9.9% 2,250.0 8.8%
Gross profit 627.2 688.6 9.8% 933.0 8.2%
Operating income 121.8 134.0 10.0% 188.0 7.8%
Income from continuing operations before income taxes 123.0 134.0 9.0% 184.0 5.4%
Net income 83.2 85.2 2.4% 113.5 1.6%
- --------------------------------------------------------------------------------------------------- ----------------------
Exchange rate (Yen/US$) 116.21 117.32 1.11 114.25 -2.77
Exchange rate (Yen/EURO) 147.97 162.89 14.92 160.92 10.84
- --------------------------------------------------------------------------------------------------- ----------------------
Net income per share (yen) 114.18 116.84 2.66 155.51 2.41
Net income per share-diluted (yen) 114.01 113.74 -0.27 151.38 -0.51
- --------------------------------------------------------------------------------------------------- ----------------------
Total assets 2,198.7 2,294.9 96.2 -- --
Shareholders' investment 1,029.6 1,132.3 102.7 -- --
Interest-bearing debt 468.0 428.7 -39.2 -- --
- --------------------------------------------------------------------------------------------------- ----------------------
Equity ratio (%) 46.8 49.3 2.5 -- --
- --------------------------------------------------------------------------------------------------- ----------------------
Shareholders' investment per share (yen) 1,411.45 1,551.72 140.27 -- --
- --------------------------------------------------------------------------------------------------- ----------------------
Cash flows from operating activities 73.5 104.8 31.3 -- --
Cash flows from investing activities -60.6 -160.9 -100.3 -- --
Cash flows from financing activities 63.6 -10.5 -74.1 -- --
Cash and cash equivalents at end of period 269.3 189.4 -79.8 -- --
- --------------------------------------------------------------------------------------------------- ----------------------
Capital expenditures 56.8 57.8 1.0 90.0 4.2
Depreciation for tangible fixed assets 52.0 54.1 2.0 76.0 3.5
R&D expenditures 84.4 93.6 9.1 128.0 13.0
- --------------------------------------------------------------------------------------------------- ----------------------
RICOH COMPANY, LTD.
* Ricoh bases the forecast estimates for the year ending March 31, 2008 above
upon information currently available to management, which involves risks
and uncertainties that could cause actual results to differ materially from
those projected.
1
RICOH COMPANY, LTD. AND CONSOLIDATED SUBSIDIARIES
FINANCIAL HIGHLIGHTS FOR THE THIRD QUARTER ENDED DECEMBER 31, 2007 (U.S. GAAP
FINANCIAL INFORMATION)
1. RESULTS FOR THE PERIOD FROM APRIL 1, 2007 TO DECEMBER 31, 2007
(1) Operating Results (Millions of yen)
- -----------------------------------------------------------------------------------------------------------
Nine months ended Nine months ended Year ended
December 31, 2006 December 31, 2007 March 31, 2007
- -----------------------------------------------------------------------------------------------------------
Net sales 1,492,634 1,640,412 2,068,925
(% change from the previous corresponding period) 7.0 9.9
Operating income 121,815 134,020 174,380
(% change from the previous corresponding period) 20.1 10.0
Income from continuing operations before income taxes 123,059 134,085 174,519
(% change from the previous corresponding period) 16.6 9.0
Net income 83,297 85,276 111,724
(% change from the previous corresponding period) 26.5 2.4
Net income per share-basic (yen) 114.18 116.84 153.10
Net income per share-diluted (yen) 114.01 113.74 151.89
- -----------------------------------------------------------------------------------------------------------
(2) Financial Position (Millions of yen)
- -----------------------------------------------------------------------------------------------------------
December 31, 2006 December 31, 2007 March 31, 2007
- -----------------------------------------------------------------------------------------------------------
Total assets 2,198,757 2,294,990 2,243,406
Shareholders' investment 1,029,665 1,132,379 1,070,913
Equity ratio (%) 46.8 49.3 47.7
Equity per share (yen) 1,411.45 1,551.72 1,467.03
- -----------------------------------------------------------------------------------------------------------
(3) Cash Flows (Millions of yen)
- -----------------------------------------------------------------------------------------------------------
Nine months ended Nine months ended Year ended
December 31, 2006 December 31, 2007 March 31, 2007
- -----------------------------------------------------------------------------------------------------------
Cash flows from operating activities 73,548 104,858 167,297
Cash flows from investing activities -60,610 -160,942 -115,432
Cash flows from financing activities 63,675 -10,522 9,282
Cash and cash equivalents at end of period 269,361 189,468 255,737
- -----------------------------------------------------------------------------------------------------------
2. FORECAST OF OPERATING RESULTS FROM APRIL 1, 2007 TO MARCH 31, 2008 (Millions of yen)
- -------------------------------------------------------------------------------------------
Net sales 2,250,000
Operating income 188,000
Income before income taxes 184,000
Net income 113,500
Net income per share-basic (yen) 155.51
- -------------------------------------------------------------------------------------------
Notes:
* In accordance with Japanese regulations, Ricoh has issued forecast for its
financial results for the fiscal year ending March 31, 2008. These forecast
are forward-looking statements based on a number of assumptions and beliefs
in light of the information currently available to management and subject
to significant risks and uncertainties.
3. OTHERS
(1) Significant changes to consolidated subsidiaries:
Consolidated subsidiaries: 1 removal (Lanier Worldwide, Inc.)
(2) Changes in accounting method:
Not applicable
2
CONSOLIDATED PERFORMANCE
1. OPERATING RESULTS
*Overview
Consolidated net sales of Ricoh group for the third quarter of fiscal year 2008
(the three months period from October 1 to December 31, 2007) increased by 9.2%
as compared to the previous corresponding period, to Yen 552.0 billion. During
this quarter, the average yen exchange rates were Yen 113.24 against the U.S.
dollar (up Yen 4.58) and Yen 163.96 against the Euro (down Yen 12.04). Net sales
would have increased by 7.5% excluding impact of such foreign currency exchange
fluctuations.
As for Japan, sales of color PPCs (plain paper copiers), color MFPs
(multifunctional printers) and laser printers increased. Sales of support and
service related to solution business continued to perform well. Sales in
Industrial Products and Other also steadily increased. As a result, domestic net
sales increased by 3.3% as compared to the previous corresponding period.
As for overseas, the increase in sales of color MFPs and color laser printers
contributed to the favorable performance in each geographic area. Although sales
in the Americas slightly increased by 2.3% (6.2%, excluding foreign currency
exchange fluctuations) due to the decelerating economy, sales in Europe
increased significantly by 19.1% (9.7%, excluding foreign currency exchange
fluctuations) and sales in Other, comprised of China, Asia and Oceania,
continued to increase by 33.9% (32.4%, excluding foreign currency exchange
fluctuations). As a result, net sales in overseas increased by 14.3% as compared
to the previous corresponding period. Excluding effects of foreign currency
fluctuations, net sales in overseas would have increased by 11.1% as compared to
the previous corresponding period.
Gross profit increased by 8.2% as compared the previous corresponding period, to
Yen 237.4 billion. This increase in gross profit primarily reflects the increase
in sales of value-added high-margin products in Office Solutions. Selling,
general and administrative expenses (SGA) increased by 10.1% as compared to the
previous corresponding period, to Yen 187.9 billion, due to the increase of R&D
expenditures and our accelerated efforts in implementing measures for enhancing
our capabilities to provide solutions and expanding business spheres."
As a result, operating income increased by 1.6% as compared the previous
corresponding period, to Yen 49.4 billion.
Other (income) expense, net decreased as compared the previous corresponding
period, due to the foreign currency exchange loss while the foreign currency
exchange gain was posted during the previous corresponding period. As a result,
income before income taxes increased by 0.5% as compared to the previous
corresponding period, to Yen 49.0 billion.
As a result, net income increased by 2.8% as compared to the previous
corresponding period, to Yen 32.1 billion.
3
*Conditions by Product Line
Office Solutions (Sales up 10.0% to Yen 478.6 billion)
- ------------------------------------------------------
Imaging Solutions (Sales up 10.1% to Yen 434.3 billion)
-------------------------------------------------------
- As for PPCs and MFPs, while sales of monochrome products decreased as
compared to the previous corresponding period, sales of color products
increased mainly in the overseas market. As a result, overall sales of
PPCs and MFPs increased as compared to the previous corresponding
period.
- Sales of monochrome and color printers increased both in Japan and the
overseas market.
Network System Solutions (Sales up 8.3% to Yen 44.3 billion)
------------------------------------------------------------
- Sales of PC servers mainly in Japan market and sales of support and
services both in Japan and the overseas market increased.
As a result, sales in the Office Solutions segment increased by 10.0% as
compared to the previous corresponding period, to Yen 478.6 billion. Operating
income increased by 2.6% as compared to the previous corresponding period, to
Yen 63.3 billion due to the increase in sales of color products as well as
continuous cost reduction and depreciation of yen.
Industrial Products (Sales up 12.1% to Yen 34.2 billion)
- --------------------------------------------------------
Net sales in the Industrial Products increased by 12.1% as compared to the
previous corresponding period, to Yen 34.2 billion. Sales of thermal media and
semiconductor devices increased mainly in the overseas market. As a result,
operating income in this segment was Yen 1.3 billion (Yen 0.6 billion for the
previous corresponding period).
Other (Sales down 1.8% to Yen 39.1 billion)
- -------------------------------------------
Net sales in the Other decreased by 1.8% as compared to the previous
corresponding period, to Yen 39.1 billion. While sales of digital cameras
increased mainly in Japan market, sales of optical discs decreased as compared
to the previous corresponding period. As a result, operating income in this
segment was Yen 0.2 billion (Yen 0.2 billion for the previous corresponding
period).
2. FINANCIAL POSITION
*Assets, Liabilities and Shareholders' Investment
For assets, cash and cash equivalents decreased and other investments including
goodwill increased due primarily to the formation of a joint venture company,
InfoPrint Solutions Company, LLC, with IBM Corporation. As a result, total
assets increased by Yen 51.5 billion to Yen 2,294.9 billion.
For Liabilities, borrowed indebtedness decreased. As a result, total liabilities
decreased by Yen 13.4 billion to Yen 1,102.2 billion.
Shareholders' investment increased by Yen 61.4 billion, to Yen 1,132.3 billion
due primarily to retained earnings decreased by dividends payment and increased
by earning profit.
*Cash Flows (Nine months ended December 31, 2007)
As compared to the previous corresponding period, net cash provided by operating
activities in this period increased by Yen 31.3 billion, to Yen 104.8 billion.
Net cash provided by operating activities consisted primarily of an increase in
net income and depreciation and amortization, and other of which were partially
offset by an increase in inventories and a decrease in trade payables.
As compared to the previous corresponding period, net cash used in investing
activities in this period decreased by Yen 100.3 billion, to Yen 160.9 billion.
Net cash used in investing activities consisted primarily of a payment for the
formation of a joint venture company with IBM Corporation.
As a result, free cash flows generated by operating and investing activities
decreased by Yen 69.0 billion as compared to the previous corresponding period,
to cash outflows of Yen 56.0 billion.
Net cash used in financing activities amounted to Yen 10.5 billion due primarily
to a decrease in long-term indebtedness and dividends payment and other of which
were partially offset by an increase in short-term borrowings.
As a result, cash and cash equivalents at the end of this third quarter
decreased by Yen 66.2 billion as compared to the end of the preceding fiscal
year, to Yen 189.4 billion.
4
3. FORECAST FOR THE ENTIRE FISCAL YEAR
In consideration of the third quarter's results, latest competitions and
currency fluctuations, Ricoh forecasted its net sales same as announced in
October 2007, which consists of the downward revision to Japan and the updaward
to the overseas, and changed the forecast for gross profit, operating income and
net income downward. Exchange rate of Yen 105.00 against the U.S. dollar and of
Yen 155.00 against the Euro in the fourth quarter are assumed.
Our performance forecasts for fiscal year 2008 are as follows:
Exchange rate assumptions for the fiscal year ending March 31, 2008
US$ 1 = Yen 114.25 (Yen 117.02 in previous fiscal year)
EURO 1 = Yen 160.92 (Yen 150.08 in previous fiscal year)
(Billions of yen)
- ----------------------------------------------------------------------------------------------
Year ended Year ending
March 31, 2007 March 31, 2008 Change
(Results) (Forecast)
- ----------------------------------------------------------------------------------------------
Domestic sales 1,002.2 1,035.0 3.3%
Overseas sales 1,066.6 1,215.0 13.9%
Net sales 2,068.9 2,250.0 8.8%
Gross profit 862.4 933.0 8.2%
Operating income 174.3 188.0 7.8%
Income before income taxes 174.5 184.0 5.4%
Net income 111.7 113.5 1.6%
- ----------------------------------------------------------------------------------------------
* Ricoh bases the forecast estimates for the year ending March 31, 2008 above
upon information currently available to management, which involves risks
and uncertainties that could cause actual results to differ materially from
those projected.
4. OTHERS
(1) Significant changes to consolidated subsidiaries:
As of April 1, 2007, Ricoh Corporation ("RC"), a wholly-owned subsidiary of the
Company, completed the merger with Lanier Worldwide, Inc. ("Lanier"), a
wholly-owned subsidiary of RC. In associated with the merger, RC changed its
name to Ricoh Americas Corporation while Lanier was liquidated.
(2) Changes in accounting method:
Not applicable
5
5. CONSOLIDATED FINANCIAL STATEMENTS
(1) CONSOLIDATED BALANCE SHEETS
(March 31, 2007 and December 31, 2007)
Assets (Millions of yen)
- -----------------------------------------------------------------------------------------------
March 31, 2007 December 31, 2007 Change
- -----------------------------------------------------------------------------------------------
Current Assets
Cash and time deposits 257,154 190,372 -66,782
Trade receivables 693,237 705,117 11,880
Inventories 184,354 214,305 29,951
Other current assets 65,347 64,426 -921
Total Current Assets 1,200,092 1,174,220 -25,872
Fixed Assets
Tangible fixed assets 264,668 257,073 -7,595
Finance receivables 435,874 436,868 994
Other Investments 342,772 426,829 84,057
Total Fixed Assets 1,043,314 1,120,770 77,456
- -----------------------------------------------------------------------------------------------
Total Assets 2,243,406 2,294,990 51,584
- -----------------------------------------------------------------------------------------------
Note:
Contents of cash and time deposits:
Cash and cash equivalents 255,737 189,468
Time deposits 1,417 904
Liabilities and Shareholders' Investment (Millions of yen)
- -----------------------------------------------------------------------------------------------
March 31, 2007 December 31, 2007 Change
- -----------------------------------------------------------------------------------------------
Current Liabilities
Trade payables 367,211 351,240 -15,971
Short-term borrowings 178,847 189,158 10,311
Other current liabilities 189,554 176,746 -12,808
Total Current Liabilities 735,612 717,144 -18,468
Fixed Liabilities
Long-term indebtedness 236,801 239,627 2,826
Accrued pension and severance costs 99,028 99,759 731
Other fixed liabilities 44,183 45,679 1,496
Total Fixed Liabilities 380,012 385,065 5,053
- -----------------------------------------------------------------------------------------------
Total Liabilities 1,115,624 1,102,209 -13,415
- -----------------------------------------------------------------------------------------------
Minority Interest 56,869 60,402 3,533
- -----------------------------------------------------------------------------------------------
Shareholders' Investment
Common stock 135,364 135,364 --
Additional paid-in capital 186,454 186,462 8
Retained earnings 752,398 814,051 61,653
Accumulated other comprehensive income (loss) 26,998 27,403 405
Treasury stock -30,301 -30,901 -600
Total Shareholders' Investment 1,070,913 1,132,379 61,466
- -----------------------------------------------------------------------------------------------
Total Liabilities and Shareholders' Investment 2,243,406 2,294,990 51,584
- -----------------------------------------------------------------------------------------------
Note: Other comprehensive income;
Net unrealized holding gains (losses)
on available-for-sale securities 9,001 5,969 -3,032
Pension liability adjustments -9,406 -13,513 -4,107
Net unrealized gains (losses) on derivative
instruments -28 -73 -45
Cumulative translation adjustments 27,431 35,020 7,589
Reference: Exchange rate March 31, 2007 December 31, 2007
US$ 1 Yen 118.05 Yen 114.15
EURO 1 Yen 157.33 Yen 166.66
6
(2) CONSOLIDATED STATEMENTS OF INCOME
(Three months ended December 31, 2006 and 2007) (Millions of yen)
- ------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
December 31, 2006 December 31, 2007 Change %
- ------------------------------------------------------------------------------------------------------------
Net sales 505,712 552,039 46,327 9.2
Cost of sales 286,344 314,623 28,279 9.9
Percentage of net sales (%) 56.6 57.0
Gross Profit 219,368 237,416 18,048 8.2
Percentage of net sales (%) 43.4 43.0
Selling, general and administrative expenses 170,716 187,964 17,248 10.1
Percentage of net sales (%) 33.8 34.0
Operating income 48,652 49,452 800 1.6
Percentage of net sales (%) 9.6 9.0
Other (income) expense
Interest and dividend income 1,465 1,394 -71 -4.8
Percentage of net sales (%) 0.3 0.3
Interest expense 1,885 745 -1,140 -60.5
Percentage of net sales (%) 0.4 0.1
Other, net -559 1,058 1,617 --
Percentage of net sales (%) -0.1 0.3
Income before income taxes,
equity income and minority interests 48,791 49,043 252 0.5
Percentage of net sales (%) 9.6 8.9
Provision for income taxes 17,104 15,737 -1,367 -8.0
Percentage of net sales (%) 3.3 2.9
Minority interests in earnings of subsidiaries 1,345 1,516 171 12.7
Percentage of net sales (%) 0.3 0.3
Equity in earnings of affiliates 910 326 -584 -64.2
Percentage of net sales (%) 0.2 0.1
Net income 31,252 32,116 864 2.8
Percentage of net sales (%) 6.2 5.8
- ------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 117.82 Yen 113.24
EURO 1 Yen 151.92 Yen 163.96
(Nine months ended December 31, 2006 and 2007 and Year ended March 31, 2007) (Millions of yen)
- -----------------------------------------------------------------------------------------------------------------------------
Nine months ended Nine months ended Year ended
December 31, 2006 December 31, 2007 Change % March 31, 2007
- -----------------------------------------------------------------------------------------------------------------------------
Net sales 1,492,634 1,640,412 147,778 9.9 2,068,925
Cost of sales 865,350 951,743 86,393 10.0 1,206,519
Percentage of net sales (%) 58.0 58.0 58.3
Gross Profit 627,284 688,669 61,385 9.8 862,406
Percentage of net sales (%) 42.0 42.0 41.7
Selling, general and administrative expenses 505,469 554,649 49,180 9.7 688,026
Percentage of net sales (%) 33.8 33.8 33.3
Operating income 121,815 134,020 12,205 10.0 174,380
Percentage of net sales (%) 8.2 8.2 8.4
Other (income) expense
Interest and dividend income 3,446 4,554 1,108 32.2 5,501
Percentage of net sales (%) 0.2 0.3 0.3
Interest expense 5,123 3,466 -1,657 -32.3 7,350
Percentage of net sales (%) 0.3 0.2 0.4
Other, net -2,921 1,023 3,944 -- -1,988
Percentage of net sales (%) -0.1 0.1 -0.1
Income from continuing operations before income taxes,
equity income and minority interests 123,059 134,085 11,026 9.0 174,519
Percentage of net sales (%) 8.2 8.2 8.4
Provision for income taxes 42,984 45,615 2,631 6.1 64,326
Percentage of net sales (%) 2.8 2.8 3.1
Minority interests in earnings of subsidiaries 4,226 4,475 249 5.9 5,508
Percentage of net sales (%) 0.3 0.3 0.3
Equity in earnings of affiliates 1,948 1,281 -667 -34.2 1,539
Percentage of net sales (%) 0.1 0.1 0.1
Income from continuing operations 77,797 85,276 7,479 9.6 106,224
Percentage of net sales (%) 5.2 5.2 5.1
Income from discontinued operations, net of tax 5,500 -- -5,500 -- 5,500
Percentage of net sales (%) 0.4 -- 0.3
Net income 83,297 85,276 1,979 2.4 111,724
Percentage of net sales (%) 5.6 5.2 5.4
- -----------------------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 116.21 Yen 117.32 Yen 117.02
EURO 1 Yen 147.97 Yen 162.89 Yen 150.08
7
(3)-1 CONSOLIDATED SALES BY PRODUCT CATEGORY
(Three months ended December 31, 2006 and 2007) (Millions of yen)
- ------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
December 31, 2006 December 31, 2007 Change %
- ------------------------------------------------------------------------------------------------------------
[Office Solutions]
Imaging Solutions 394,391 434,313 39,922 10.1
Percentage of net sales (%) 78.0 78.7
Network System Solutions 40,924 44,335 3,411 8.3
Percentage of net sales (%) 8.1 8.0
Total Office Solutions 435,315 478,648 43,333 10.0
Percentage of net sales (%) 86.1 86.7
- ------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 30,570 34,273 3,703 12.1
Percentage of net sales (%) 6.0 6.2
- ------------------------------------------------------------------------------------------------------------
[Other]
Other 39,827 39,118 -709 -1.8
Percentage of net sales (%) 7.9 7.1
- ------------------------------------------------------------------------------------------------------------
Grand Total 505,712 552,039 46,327 9.2
Percentage of net sales (%) 100.0 100.0
- ------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 117.82 Yen 113.24
EURO 1 Yen 151.92 Yen 163.96
(Nine months ended December 31, 2006 and 2007 and Year ended March 31, 2007) (Millions of yen)
- -----------------------------------------------------------------------------------------------------------------------------
Nine months ended Nine months ended Year ended
December 31, 2006 December 31, 2007 Change % March 31, 2007
- -----------------------------------------------------------------------------------------------------------------------------
[Office Solutions]
Imaging Solutions 1,138,017 1,261,705 123,688 10.9 1,580,155
Percentage of net sales (%) 76.2 76.9 76.4
Network System Solutions 135,388 141,570 6,182 4.6 194,312
Percentage of net sales (%) 9.1 8.6 9.4
Total Office Solutions 1,273,405 1,403,275 129,870 10.2 1,774,467
Percentage of net sales (%) 85.3 85.5 85.8
- -----------------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 98,826 111,749 12,923 13.1 133,387
Percentage of net sales (%) 6.6 6.8 6.4
- -----------------------------------------------------------------------------------------------------------------------------
[Other]
Other 120,403 125,388 4,985 4.1 161,071
Percentage of net sales (%) 8.1 7.7 7.8
- -----------------------------------------------------------------------------------------------------------------------------
Grand Total 1,492,634 1,640,412 147,778 9.9 2,068,925
Percentage of net sales (%) 100.0 100.0 100.0
- -----------------------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 116.21 Yen 117.32 Yen 117.02
EURO 1 Yen 147.97 Yen 162.89 Yen 150.08
Notes:
* Each category includes the following product line:
Imaging Solutions Digital PPCs, color PPCs, digital duplicators,
facsimile machines, analog PPCs, diazo copiers,
scanners, MFPs(multifunctional printers), laser
printers and software
Network System Solutions Personal computers, servers, network systems and
network related software
Industrial Products Thermal media, optical equipment, semiconductor
devices, electronic components and measuring
equipment
Other Optical discs and digital cameras
8
(3)-2 CONSOLIDATED SALES BY GEOGRAPHIC AREA
(Three months ended December 31, 2006 and 2007) (Millions of yen)
- ----------------------------------------------------------------------------------------------
Three months ended Three months ended
December 31, 2006 December 31, 2007 Change %
- ----------------------------------------------------------------------------------------------
[Domestic] 236,817 244,652 7,835 3.3
Percentage of net sales (%) 46.8 44.3
[Overseas] 268,895 307,387 38,492 14.3
Percentage of net sales (%) 53.2 55.7
The Americas 105,785 108,252 2,467 2.3
Percentage of net sales (%) 20.9 19.6
Europe 129,798 154,529 24,731 19.1
Percentage of net sales (%) 25.7 28.0
Other 33,312 44,606 11,294 33.9
Percentage of net sales (%) 6.6 8.1
Grand Total 505,712 552,039 46,327 9.2
Percentage of net sales (%) 100.0 100.0
- -----------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 117.82 Yen 113.24
EURO 1 Yen 151.92 Yen 163.96
(Nine months ended December 31, 2006 and 2007 and Year ended March 31, 2007) (Millions of yen)
- --------------------------------------------------------------------------------------------------------------
Nine months ended Nine months ended Year ended
December 31, 2006 December 31, 2007 Change % March 31, 2007
- --------------------------------------------------------------------------------------------------------------
[Domestic] 729,308 749,091 19,783 2.7 1,002,251
Percentage of net sales (%) 48.9 45.7 48.4
[Overseas] 763,326 891,321 127,995 16.8 1,066,674
Percentage of net sales (%) 51.1 54.3 51.6
The Americas 309,369 323,953 14,584 4.7 426,453
Percentage of net sales (%) 20.7 19.7 20.6
Europe 356,302 443,645 87,343 24.5 507,158
Percentage of net sales (%) 23.9 27.0 24.5
Other 97,655 123,723 26,068 26.7 133,063
Percentage of net sales (%) 6.5 7.6 6.5
Grand Total 1,492,634 1,640,412 147,778 9.9 2,068,925
Percentage of net sales (%) 100.0 100.0 100.0
- --------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 116.21 Yen 117.32 Yen 117.02
EURO 1 Yen 147.97 Yen 162.89 Yen 150.08
9
(4) CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT
Nine months ended December 31, 2006 (Millions of yen)
- ------------------------------------------------------------------------------------------------------------------------------------
Additional Accumulated other Total
Common paid-in Retained comprehensive Treasury Shareholders'
stock capital earnings income (loss) stock Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Beginning balance 135,364 186,450 665,394 4,099 -31,062 960,245
Cumulative effect of adjustment resulted from applying
SAB No.108 -- -- -6,464 -- -- -6,464
- ------------------------------------------------------------------------------------------------------------------------------------
Beginning balance (after adjustment) 135,364 186,450 658,930 4,099 -31,062 953,781
- ------------------------------------------------------------------------------------------------------------------------------------
Gain(Loss)on disposal of treasury stock 2 2
Dividends declared and approved -18,256 -18,256
Comprehensive income
Net income 83,297 83,297
Net unrealized holding losses
on available-for-sale securities -2,693 -2,693
Pension liability adjustments 1,064 1,064
Net unrealized losses on derivative instruments -193 -193
Cumulative translation adjustments 12,829 12,829
-------------
Total comprehensive income 94,304
-------------
Net changes in treasury stock -166 -166
- ------------------------------------------------------------------------------------------------------------------------------------
Ending balance 135,364 186,452 723,971 15,106 -31,228 1,029,665
====================================================================================================================================
Nine months ended December 31, 2007 (Millions of yen)
- ------------------------------------------------------------------------------------------------------------------------------------
Additional Accumulated other Total
Common paid-in Retained comprehensive Treasury Shareholders'
stock capital earnings income (loss) stock Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Beginning balance 135,364 186,454 752,398 26,998 -30,301 1,070,913
Cumulative effect of adjustment resulted from applying
EITF No.06-2 -- -- -995 -- -- -995
- ------------------------------------------------------------------------------------------------------------------------------------
Beginning balance (after adjustment) 135,364 186,454 751,403 26,998 -30,301 1,069,918
- ------------------------------------------------------------------------------------------------------------------------------------
Gain(Loss)on disposal of treasury stock 8 8
Dividends declared and approved -22,628 -22,628
Comprehensive income
Net income 85,276 85,276
Net unrealized holding losses
on available-for-sale securities -3,032 -3,032
Pension liability adjustments -4,107 -4,107
Net unrealized losses on derivative instruments -45 -45
Cumulative translation adjustments 7,589 7,589
-------------
Total comprehensive income 85,681
-------------
Net changes in treasury stock -600 -600
- ------------------------------------------------------------------------------------------------------------------------------------
Ending balance 135,364 186,462 814,051 27,403 -30,901 1,132,379
====================================================================================================================================
Year ended March 31, 2007 (Millions of yen)
- ------------------------------------------------------------------------------------------------------------------------------------
Additional Accumulated other Total
Common paid-in Retained comprehensive Treasury Shareholders'
stock capital earnings income (loss) stock Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Beginning balance 135,364 186,450 665,394 4,099 -31,062 960,245
Cumulative effect of adjustment resulted from applying
SAB No.108 -- -- -6,464 -- -- -6,464
- ------------------------------------------------------------------------------------------------------------------------------------
Beginning balance (after adjustment) 135,364 186,450 658,930 4,099 -31,062 953,781
- ------------------------------------------------------------------------------------------------------------------------------------
Gain(Loss)on disposal of treasury stock 4 4
Dividends declared and approved -18,256 -18,256
Comprehensive income
Net income 111,724 111,724
Net unrealized holding gains
on available-for-sale securities 73 73
Pension liability adjustments 970 970
Net unrealized losses on derivative instruments -185 -185
Cumulative translation adjustments 24,774 24,774
-------------
Total comprehensive income 137,356
-------------
Adjustment to initially apply SFAS No.158 -2,733 -2,733
Net changes in treasury stock 761 761
- ------------------------------------------------------------------------------------------------------------------------------------
Ending balance 135,364 186,454 752,398 26,998 -30,301 1,070,913
====================================================================================================================================
10
(5) CONSOLIDATED STATEMENTS OF CASH FLOWS
(Nine months ended December 31, 2006 and 2007 and Year ended March 31, 2007) (Millions of yen)
- --------------------------------------------------------------------------------------------------------------------------------
Nine months ended Nine months ended Year ended
December 31, 2006 December 31, 2007 March 31, 2007
- --------------------------------------------------------------------------------------------------------------------------------
I. Cash Flows from Operating Activities:
Net income 83,297 85,276 111,724
Income from discontinued operations, net of tax -5,500 -- -5,500
----------------------------------------------------
Income from continuing operations 77,797 85,276 106,224
Adjustments to reconcile net income to net cash
provided by operating activities--
Depreciation and amortization 65,280 71,344 89,632
Equity in earnings of affiliates, net of dividends received -1,106 -706 -711
Deferred income taxes -1,540 1,291 -2,197
Loss on disposal and sales of tangible fixed assets 2,775 1,525 3,722
Pension and severance costs, less payments -1,138 -2,304 -773
Changes in assets and liabilities--
(Increase) decrease in trade receivables 2,332 446 -15,919
Increase in inventories -30,761 -12,485 -1,494
Increase in finance receivables -15,705 -4,093 -28,047
(Decrease) increase in trade payables -13,571 -28,160 2,199
(Decrease) increase in accrued income taxes and
accrued expenses and other -3,634 -16,836 11,175
Other, net -7,181 9,560 3,486
- --------------------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 73,548 104,858 167,297
- --------------------------------------------------------------------------------------------------------------------------------
II. Cash Flows from Investing Activities:
Proceeds from sales of property, plant and equipment 404 201 463
Expenditures for tangible fixed assets -56,760 -57,849 -85,747
Payments for purchases of available-for-sale securities -73,155 -73,619 -97,158
Proceeds from sales of available-for-sale securities 72,205 73,974 96,087
Decrease in time deposits, net 26 525 64
Proceeds from sales of discontinued operation 12,000 -- 12,000
Purchase of business, net of cash acquired -- -89,863 -23,200
Other, net -15,330 -14,311 -17,941
- --------------------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities -60,610 -160,942 -115,432
- --------------------------------------------------------------------------------------------------------------------------------
III. Cash Flows from Financing Activities:
Proceeds from long-term indebtedness 54,782 53,365 60,157
Repayment of long-term indebtedness -25,958 -62,854 -49,115
Increase in short-term borrowings, net 7,064 33,033 8,362
Proceeds from issuance of long-term debt securities 65,274 -- 65,274
Repayment of long-term debt securities -18,000 -10,000 -55,000
Dividend paid -18,256 -22,628 -18,240
Payment for purchase of treasury stock -593 -701 -799
Other, net -638 -737 -1,357
- --------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities 63,675 -10,522 9,282
- --------------------------------------------------------------------------------------------------------------------------------
IV. Net Increase in Cash and Cash Equivalents from discontinued operations 825 -- 825
- --------------------------------------------------------------------------------------------------------------------------------
V. Effect of Exchange Rate Changes on Cash and Cash Equivalents 4,868 337 6,710
- --------------------------------------------------------------------------------------------------------------------------------
VI. Net Increase (Decrease) in Cash and Cash Equivalents 82,306 -66,269 68,682
- --------------------------------------------------------------------------------------------------------------------------------
VII. Cash and Cash Equivalents at Beginning of Year 187,055 255,737 187,055
- --------------------------------------------------------------------------------------------------------------------------------
VIII. Cash and Cash Equivalents at End of Period 269,361 189,468 255,737
- --------------------------------------------------------------------------------------------------------------------------------
11
(6) SEGMENT INFORMATION
(a) Operating Segments Information
(Three months ended December 31, 2006 and 2007) (Millions of yen)
- --------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
December 31, 2006 December 31, 2007 Change %
- --------------------------------------------------------------------------------------------------------------------
OFFICE SOLUTIONS:
Net sales:
Unaffiliated customers 435,315 478,648 43,333 10.0
Intersegment -- -- -- --
Total 435,315 478,648 43,333 10.0
- --------------------------------------------------------------------------------------------------------------------
Operating expenses 373,589 415,296 41,707 11.2
- --------------------------------------------------------------------------------------------------------------------
Operating income 61,726 63,352 1,626 2.6
Operating income on sales in Office Solutions (%) 14.2 13.2
- --------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PRODUCTS:
Net sales:
Unaffiliated customers 30,570 34,273 3,703 12.1
Intersegment 1,313 1,293 -20 -1.5
Total 31,883 35,566 3,683 11.6
- --------------------------------------------------------------------------------------------------------------------
Operating expenses 31,262 34,202 2,940 9.4
- --------------------------------------------------------------------------------------------------------------------
Operating income 621 1,364 743 119.6
Operating income on sales in Industrial Products (%) 1.9 3.8
- --------------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
Unaffiliated customers 39,827 39,118 -709 -1.8
Intersegment -- -- -- --
Total 39,827 39,118 -709 -1.8
- --------------------------------------------------------------------------------------------------------------------
Operating expenses 39,570 38,820 -750 -1.9
- --------------------------------------------------------------------------------------------------------------------
Operating income 257 298 41 16.0
Operating income on sales in Other (%) 0.6 0.8
- --------------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -1,313 -1,293 20 --
Total -1,313 -1,293 20 --
- --------------------------------------------------------------------------------------------------------------------
Operating expenses:
Intersegment -1,268 -1,293 -25 --
Corporate 13,907 15,562 1,655 --
Total 12,639 14,269 1,630 --
- --------------------------------------------------------------------------------------------------------------------
Operating income -13,952 -15,562 -1,610 --
- --------------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
Unaffiliated customers 505,712 552,039 46,327 9.2
Intersegment -- -- -- --
Total 505,712 552,039 46,327 9.2
- --------------------------------------------------------------------------------------------------------------------
Operating expenses 457,060 502,587 45,527 10.0
- --------------------------------------------------------------------------------------------------------------------
Operating income 48,652 49,452 800 1.6
Operating income on consolidated net sales (%) 9.6 9.0
- --------------------------------------------------------------------------------------------------------------------
12
(Nine months ended December 31, 2006 and 2007 and Year ended March 31, 2007) (Millions of yen)
- -----------------------------------------------------------------------------------------------------------------------------------
Nine months ended Nine months ended Year ended
December 31, 2006 December 31, 2007 Change % March 31, 2007
- -----------------------------------------------------------------------------------------------------------------------------------
OFFICE SOLUTIONS:
Net sales:
Unaffiliated customers 1,273,405 1,403,275 129,870 10.2 1,774,467
Intersegment -- -- -- -- --
Total 1,273,405 1,403,275 129,870 10.2 1,774,467
- -----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 1,112,909 1,229,068 116,159 10.4 1,549,156
- -----------------------------------------------------------------------------------------------------------------------------------
Operating income 160,496 174,207 13,711 8.5 225,311
Operating income on sales in Office Solutions (%) 12.6 12.4 12.7
- -----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PRODUCTS:
Net sales:
Unaffiliated customers 98,826 111,749 12,923 13.1 133,387
Intersegment 3,638 3,448 -190 -5.2 4,725
Total 102,464 115,197 12,733 12.4 138,112
- -----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 100,949 111,139 10,190 10.1 135,164
- -----------------------------------------------------------------------------------------------------------------------------------
Operating income 1,515 4,058 2,543 167.9 2,948
Operating income on sales in Industrial Products (%) 1.5 3.5 2.1
- -----------------------------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
Unaffiliated customers 120,403 125,388 4,985 4.1 161,071
Intersegment -- -- -- -- --
Total 120,403 125,388 4,985 4.1 161,071
- -----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 118,248 123,925 5,677 4.8 158,868
- -----------------------------------------------------------------------------------------------------------------------------------
Operating income 2,155 1,463 -692 -32.1 2,203
Operating income on sales in Other (%) 1.8 1.2 1.4
- -----------------------------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -3,638 -3,448 190 -- -4,725
Total -3,638 -3,448 190 -- -4,725
- -----------------------------------------------------------------------------------------------------------------------------------
Operating expenses:
Intersegment -3,638 -3,449 189 -- -4,727
Corporate 42,351 45,709 3,358 -- 56,084
Total 38,713 42,260 3,547 -- 51,357
- -----------------------------------------------------------------------------------------------------------------------------------
Operating income -42,351 -45,708 -3,357 -- -56,082
- -----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
Unaffiliated customers 1,492,634 1,640,412 147,778 9.9 2,068,925
Intersegment -- -- -- -- --
Total 1,492,634 1,640,412 147,778 9.9 2,068,925
- -----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 1,370,819 1,506,392 135,573 9.9 1,894,545
- -----------------------------------------------------------------------------------------------------------------------------------
Operating income 121,815 134,020 12,205 10.0 174,380
Operating income on consolidated net sales (%) 8.2 8.2 8.4
- -----------------------------------------------------------------------------------------------------------------------------------
13
(b) Geographic Segments Information
(Three months ended December 31, 2006 and 2007) (Millions of yen)
- --------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
December 31, 2006 December 31, 2007 Change %
- --------------------------------------------------------------------------------------------------------------
JAPAN:
Net sales:
External customers 243,239 253,802 10,563 4.3
Intersegment 132,630 127,542 -5,088 -3.8
Total 375,869 381,344 5,475 1.5
- --------------------------------------------------------------------------------------------------------------
Operating expenses 342,864 347,595 4,731 1.4
- --------------------------------------------------------------------------------------------------------------
Operating income 33,005 33,749 744 2.3
Operating income on sales in Japan(%) 8.8 8.9
- --------------------------------------------------------------------------------------------------------------
THE AMERICAS:
Net sales:
External customers 105,618 107,457 1,839 1.7
Intersegment 795 627 -168 -21.1
Total 106,413 108,084 1,671 1.6
- --------------------------------------------------------------------------------------------------------------
Operating expenses 102,834 108,280 5,446 5.3
- --------------------------------------------------------------------------------------------------------------
Operating income 3,579 -196 -3,775 --
Operating income on sales in the Americas(%) 3.4 -0.2
- --------------------------------------------------------------------------------------------------------------
EUROPE:
Net sales:
External customers 130,042 155,240 25,198 19.4
Intersegment 1,366 635 -731 -53.5
Total 131,408 155,875 24,467 18.6
- --------------------------------------------------------------------------------------------------------------
Operating expenses 122,581 144,455 21,874 17.8
- --------------------------------------------------------------------------------------------------------------
Operating income 8,827 11,420 2,593 29.4
Operating income on sales in Europe(%) 6.7 7.3
- --------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 26,813 35,540 8,727 32.5
Intersegment 42,843 43,283 440 1.0
Total 69,656 78,823 9,167 13.2
- --------------------------------------------------------------------------------------------------------------
Operating expenses 64,700 71,763 7,063 10.9
- --------------------------------------------------------------------------------------------------------------
Operating income 4,956 7,060 2,104 42.5
Operating income on sales in Other(%) 7.1 9.0
- --------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -177,634 -172,087 5,547 --
Total -177,634 -172,087 5,547 --
- --------------------------------------------------------------------------------------------------------------
Operating expenses -175,919 -169,506 6,413 --
- --------------------------------------------------------------------------------------------------------------
Operating income -1,715 -2,581 -866 --
- --------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 505,712 552,039 46,327 9.2
Intersegment -- -- -- --
Total 505,712 552,039 46,327 9.2
- --------------------------------------------------------------------------------------------------------------
Operating expenses 457,060 502,587 45,527 10.0
- --------------------------------------------------------------------------------------------------------------
Operating income 48,652 49,452 800 1.6
Operating income on consolidated net sales(%) 9.6 9.0
- --------------------------------------------------------------------------------------------------------------
14
(Nine months ended December 31, 2006 and 2007 and Year ended March 31, 2007) (Millions of yen)
- -------------------------------------------------------------------------------------------------------------------------
Nine months ended Nine months ended Year ended
December 31, 2006 December 31, 2007 Change % March 31, 2007
- -------------------------------------------------------------------------------------------------------------------------
JAPAN:
Net sales:
External customers 747,668 775,154 27,486 3.7 1,026,663
Intersegment 378,662 376,115 -2,547 -0.7 495,304
Total 1,126,330 1,151,269 24,939 2.2 1,521,967
- -------------------------------------------------------------------------------------------------------------------------
Operating expenses 1,041,717 1,067,012 25,295 2.4 1,411,653
- -------------------------------------------------------------------------------------------------------------------------
Operating income 84,613 84,257 -356 -0.4 110,314
Operating income on sales in Japan(%) 7.5 7.3 7.2
- -------------------------------------------------------------------------------------------------------------------------
THE AMERICAS:
Net sales:
External customers 309,178 321,282 12,104 3.9 426,009
Intersegment 2,526 2,727 201 8.0 3,253
Total 311,704 324,009 12,305 3.9 429,262
- -------------------------------------------------------------------------------------------------------------------------
Operating expenses 299,175 318,754 19,579 6.5 408,150
- -------------------------------------------------------------------------------------------------------------------------
Operating income 12,529 5,255 -7,274 -58.1 21,112
Operating income on sales in the Americas(%) 4.0 1.6 4.9
- -------------------------------------------------------------------------------------------------------------------------
EUROPE:
Net sales:
External customers 356,865 444,548 87,683 24.6 508,200
Intersegment 3,106 2,366 -740 -23.8 3,595
Total 359,971 446,914 86,943 24.2 511,795
- -------------------------------------------------------------------------------------------------------------------------
Operating expenses 341,558 419,664 78,106 22.9 478,380
- -------------------------------------------------------------------------------------------------------------------------
Operating income 18,413 27,250 8,837 48.0 33,415
Operating income on sales in Europe(%) 5.1 6.1 6.5
- -------------------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 78,923 99,428 20,505 26.0 108,053
Intersegment 115,245 134,188 18,943 16.4 160,990
Total 194,168 233,616 39,448 20.3 269,043
- -------------------------------------------------------------------------------------------------------------------------
Operating expenses 180,387 214,312 33,925 18.8 251,486
- -------------------------------------------------------------------------------------------------------------------------
Operating income 13,781 19,304 5,523 40.1 17,557
Operating income on sales in Other(%) 7.1 8.3 6.5
- -------------------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -499,539 -515,396 -15,857 -- -663,142
Total -499,539 -515,396 -15,857 -- -663,142
- -------------------------------------------------------------------------------------------------------------------------
Operating expenses -492,018 -513,350 -21,332 -- -655,124
- -------------------------------------------------------------------------------------------------------------------------
Operating income -7,521 -2,046 5,475 -- -8,018
- -------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 1,492,634 1,640,412 147,778 9.9 2,068,925
Intersegment -- -- -- -- --
Total 1,492,634 1,640,412 147,778 9.9 2,068,925
- -------------------------------------------------------------------------------------------------------------------------
Operating expenses 1,370,819 1,506,392 135,573 9.9 1,894,545
- -------------------------------------------------------------------------------------------------------------------------
Operating income 121,815 134,020 12,205 10.0 174,380
Operating income on consolidated net sales(%) 8.2 8.2 8.4
- -------------------------------------------------------------------------------------------------------------------------
15
- -APPENDIX- (THIRD QUARTER ENDED DECEMBER 31, 2007)
1. CONSOLIDATED QUARTERLY PERFORMANCE OUTLINE
Fiscal year 2008 (Millions of yen)
- ----------------------------------------------------------------------------------------------------------
1Q Change(%) 2Q Change(%) 3Q Change(%)
- ----------------------------------------------------------------------------------------------------------
Net sales 530,113 9.4 558,260 11.1 552,039 9.2
Gross profit 228,770 12.9 222,483 8.3 237,416 8.2
Operating income 46,616 14.7 37,952 16.7 49,452 1.6
Income from continuing operations
before income taxes 53,264 37.6 31,778 -10.6 49,043 0.5
Net income 33,855 16.2 19,305 -15.8 32,116 2.8
- ----------------------------------------------------------------------------------------------------------
Net income per share (yen) 46.38 -- 26.45 -- 44.01 --
Net income per share-diluted (yen) 45.15 -- 25.75 -- 42.84 --
- ----------------------------------------------------------------------------------------------------------
Total assets 2,313,588 -- 2,299,845 -- 2,294,990 --
Shareholders' investment 1,111,025 -- 1,114,571 -- 1,132,379 --
- ----------------------------------------------------------------------------------------------------------
Shareholders' investment per share (yen) 1,522.12 -- 1,527.18 -- 1,551.72 --
- ----------------------------------------------------------------------------------------------------------
Fiscal year 2007 (Millions of yen)
- --------------------------------------------------------------------------------------------------------------------------------
1Q Change(%) 2Q Change(%) 3Q Change(%) 4Q Change(%)
- --------------------------------------------------------------------------------------------------------------------------------
Net sales 484,576 7.3 502,346 7.2 505,712 6.6 576,291 11.9
Gross profit 202,565 4.7 205,351 6.8 219,368 9.6 235,122 12.4
Operating income 40,647 11.7 32,516 13.6 48,652 33.7 52,565 11.4
Income from continuing operations
before income taxes 38,704 4.0 35,564 17.3 48,791 28.3 51,460 8.9
Net income 29,125 22.8 22,920 19.7 31,252 35.9 28,427 -8.9
- --------------------------------------------------------------------------------------------------------------------------------
Net income per share (yen) 39.92 -- 31.43 -- 42.83 -- 38.92 --
Net income per share-diluted (yen) 39.92 -- 31.43 -- 42.66 -- 37.88 --
- --------------------------------------------------------------------------------------------------------------------------------
Total assets 2,048,349 -- 2,090,974 -- 2,198,757 -- 2,243,406 --
Shareholders' investment 973,761 -- 1,001,948 -- 1,029,665 -- 1,070,913 --
- --------------------------------------------------------------------------------------------------------------------------------
Shareholders' investment per share (yen) 1,334.84 -- 1,373.28 -- 1,411.45 -- 1,467.03 --
- --------------------------------------------------------------------------------------------------------------------------------
Note:
* Fiscal year refers to Ricoh's fiscal year ended March 31.
A1
2. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Three months ended December 31, 2006 and 2007) (Millions of yen)
- --------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Change excluding
December 31, 2006 December 31, 2007 Change % exchange impact %
- --------------------------------------------------------------------------------------------------------------------------
[Office Solutions]
Imaging Solutions 394,391 434,313 39,922 10.1 31,842 8.1
Percentage of net sales (%) 78.0 78.7
Domestic 147,470 152,953 5,483 3.7 5,483 3.7
Overseas 246,921 281,360 34,439 13.9 26,359 10.7
Network System Solutions 40,924 44,335 3,411 8.3 3,196 7.8
Percentage of net sales (%) 8.1 8.0
Domestic 38,681 41,343 2,662 6.9 2,662 6.9
Overseas 2,243 2,992 749 33.4 534 23.8
Office Solutions Total 435,315 478,648 43,333 10.0 35,038 8.0
Percentage of net sales (%) 86.1 86.7
Domestic 186,151 194,296 8,145 4.4 8,145 4.4
Overseas 249,164 284,352 35,188 14.1 26,893 10.8
The Americas 102,116 104,403 2,287 2.2 6,187 6.1
Europe 122,756 147,098 24,342 19.8 12,633 10.3
Other 24,292 32,851 8,559 35.2 8,073 33.2
- --------------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 30,570 34,273 3,703 12.1 3,493 11.4
Percentage of net sales (%) 6.0 6.2
Domestic 17,487 17,139 -348 -2.0 -348 -2.0
Overseas 13,083 17,134 4,051 31.0 3,841 29.4
The Americas 3,137 3,483 346 11.0 505 16.1
Europe 4,650 5,457 807 17.4 499 10.7
Other 5,296 8,194 2,898 54.7 2,837 53.6
- --------------------------------------------------------------------------------------------------------------------------
[Other]
Other 39,827 39,118 -709 -1.8 -769 -1.9
Percentage of net sales (%) 7.9 7.1
Domestic 33,179 33,217 38 0.1 38 0.1
Overseas 6,648 5,901 -747 -11.2 -807 -12.1
The Americas 532 366 -166 -31.2 -153 -28.8
Europe 2,392 1,974 -418 -17.5 -546 -22.8
Other 3,724 3,561 -163 -4.4 -108 -2.9
- --------------------------------------------------------------------------------------------------------------------------
Grand Total 505,712 552,039 46,327 9.2 37,762 7.5
Percentage of net sales (%) 100.0 100.0
Domestic 236,817 244,652 7,835 3.3 7,835 3.3
Percentage of net sales (%) 46.8 44.3
Overseas 268,895 307,387 38,492 14.3 29,927 11.1
Percentage of net sales (%) 53.2 55.7
The Americas 105,785 108,252 2,467 2.3 6,539 6.2
Percentage of net sales (%) 20.9 19.6
Europe 129,798 154,529 24,731 19.1 12,586 9.7
Percentage of net sales (%) 25.7 28.0
Other 33,312 44,606 11,294 33.9 10,802 32.4
Percentage of net sales (%) 6.6 8.1
- --------------------------------------------------------------------------------------------------------------------------
Reference: Exchange rate
US$ 1 Yen 117.82 Yen 113.24 Yen -4.58
EURO 1 Yen 151.92 Yen 163.96 Yen 12.04
Notes:
* Each category includes the following product line:
Imaging Solutions Digital PPCs, color PPCs, digital duplicators,
facsimile machines, analog PPCs, diazo copiers,
scanners, MFPs(multifunctional printers), laser
printers and software
Network System Solutions Personal computers, PC servers, network systems and
network related software
Industrial Products Thermal media, optical equipments, semiconductors,
electronic component and measuring equipments
Other Optical discs and digital camera
A2
(Nine months ended December 31, 2006 and 2007 and Year ended March 31, 2007) (Millions of yen)
- ------------------------------------------------------------------------------------------------------------------------------------
Nine months ended Nine months ended Change excluding Year ended
December 31, 2006 December 31, 2007 Change % exchange impact % March 31, 2007
- ------------------------------------------------------------------------------------------------------------------------------------
[Office Solutions]
Imaging Solutions 1,138,017 1,261,705 123,688 10.9 76,054 6.7 1,580,155
Percentage of net sales (%) 76.2 76.9 76.4
Domestic 441,862 449,601 7,739 1.8 7,739 1.8 604,059
Overseas 696,155 812,104 115,949 16.7 68,315 9.8 976,096
Network System Solutions 135,388 141,570 6,182 4.6 5,337 3.9 194,312
Percentage of net sales (%) 9.1 8.6 9.4
Domestic 128,328 132,973 4,645 3.6 4,645 3.6 184,672
Overseas 7,060 8,597 1,537 21.8 692 9.8 9,640
Office Solutions Total 1,273,405 1,403,275 129,870 10.2 81,391 6.4 1,774,467
Percentage of net sales (%) 85.3 85.5 85.8
Domestic 570,190 582,574 12,384 2.2 12,384 2.2 788,731
Overseas 703,215 820,701 117,486 16.7 69,007 9.8 985,736
The Americas 293,046 310,696 17,650 6.0 14,727 5.0 405,457
Europe 336,929 418,708 81,779 24.3 44,037 13.1 479,859
Other 73,240 91,297 18,057 24.7 10,243 14.0 100,420
- -----------------------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 98,826 111,749 12,923 13.1 11,280 11.4 133,387
Percentage of net sales (%) 6.6 6.8 6.4
Domestic 55,984 61,390 5,406 9.7 5,406 9.7 76,202
Overseas 42,842 50,359 7,517 17.5 5,874 13.7 57,185
The Americas 15,228 11,496 -3,732 -24.5 -3,839 -25.2 19,388
Europe 14,031 16,983 2,952 21.0 1,731 12.3 19,378
Other 13,583 21,880 8,297 61.1 7,982 58.8 18,419
- -----------------------------------------------------------------------------------------------------------------------------------
[Other]
Other 120,403 125,388 4,985 4.1 4,050 3.4 161,071
Percentage of net sales (%) 8.1 7.7 7.8
Domestic 103,134 105,127 1,993 1.9 1,993 1.9 137,318
Overseas 17,269 20,261 2,992 17.3 2,057 11.9 23,753
The Americas 1,095 1,761 666 60.8 656 59.9 1,608
Europe 5,342 7,954 2,612 48.9 1,925 36.0 7,921
Other 10,832 10,546 -286 -2.6 -524 -4.8 14,224
- -----------------------------------------------------------------------------------------------------------------------------------
Grand Total 1,492,634 1,640,412 147,778 9.9 96,721 6.5 2,068,925
Percentage of net sales (%) 100.0 100.0 100.0
Domestic 729,308 749,091 19,783 2.7 19,783 2.7 1,002,251
Percentage of net sales (%) 48.9 45.7 48.4
Overseas 763,326 891,321 127,995 16.8 76,938 10.1 1,066,674
Percentage of net sales (%) 51.1 54.3 51.6
The Americas 309,369 323,953 14,584 4.7 11,544 3.7 426,453
Percentage of net sales (%) 20.7 19.7 20.6
Europe 356,302 443,645 87,343 24.5 47,693 13.4 507,158
Percentage of net sales (%) 23.9 27.0 24.5
Other 97,655 123,723 26,068 26.7 17,701 18.1 133,063
Percentage of net sales (%) 6.5 7.6 6.5
- -----------------------------------------------------------------------------------------------------------------------------------
Reference: Exchange rate
US$ 1 Yen 116.21 Yen 117.32 Yen 1.11 Yen 117.02
EURO 1 Yen 147.97 Yen 162.89 Yen 14.92 Yen 150.08
Notes:
* Each category includes the following product line:
Imaging Solutions Digital PPCs, color PPCs, digital duplicators,
facsimile machines, analog PPCs, diazo copiers,
scanners, MFPs(multifunctional printers), laser
printers and software
Network System Solutions Personal computers, PC servers, network systems and
network related software
Industrial Products Thermal media, optical equipments, semiconductors,
electronic component and measuring equipments
Other Optical discs and digital camera
A3
3. FORECAST OF CONSOLIDATED PERFORMANCE
(Billions of yen)
- -----------------------------------------------------------------------------------------------------------------------------------
Half year Three months Three months Year
ended ended ending ending
Sept. 30, 2007 Change Dec. 31, 2007 Change Mar. 31, 2008 Change Mar. 31, 2008 Change
Results % Results % Forecast % Forecast %
- -----------------------------------------------------------------------------------------------------------------------------------
Net sales 1,088.3 10.3 552.0 9.2 609.5 5.8 2,250.0 8.8
Gross profit 451.2 10.6 237.4 8.2 244.3 3.9 933.0 8.2
Operating income 84.5 15.6 49.4 1.6 53.9 2.7 188.0 7.8
Income before income taxes 85.0 14.5 49.0 0.5 49.9 -3.0 184.0 5.4
Net income 53.1 2.1 32.1 2.8 28.2 -0.7 113.5 1.6
- -----------------------------------------------------------------------------------------------------------------------------------
Net income per share (yen) 72.83 -- 44.01 -- 38.67 -- 155.51 --
Net income per share-diluted (yen) 70.90 -- 42.84 -- 37.64 -- 151.38 --
- -----------------------------------------------------------------------------------------------------------------------------------
Capital expenditures 39.6 -- 18.1 -- 32.3 -- 90.0 --
Depreciation for tangible fixed assets 35.6 -- 18.4 -- 22.0 -- 76.0 --
R&D expenditures 61.5 -- 32.0 -- 34.5 -- 128.0 --
- -----------------------------------------------------------------------------------------------------------------------------------
Exchange rate (Yen/US$) 119.37 -- 113.24 -- 105.00 -- 114.25 --
Exchange rate (Yen/EURO) 162.36 -- 163.96 -- 155.00 -- 160.92 --
- -----------------------------------------------------------------------------------------------------------------------------------
4. FORECAST OF CONSOLIDATED SALES BY PRODUCT CATEGORY
(Billions of yen)
- ---------------------------------------------------------------------------------------------------------
Three months ending March 31, 2008 Year ending March 31, 2008
---------------------------------- --------------------------
Forecast Change Forecast(*) Change Forecast Change Forecast(*) Change
% % % %
- ---------------------------------------------------------------------------------------------------------
[Office Solutions]
Imaging Solutions 471.4 6.6 487.9 10.4 1,733.1 9.7 1,702.0 7.7
Domestic 172.9 6.6 172.9 6.6 622.5 3.1 622.5 3.1
Overseas 298.5 6.7 315.0 12.6 1,110.6 13.8 1,079.5 10.6
Network System Solutions 62.9 6.7 62.9 6.7 204.4 5.2 203.6 4.8
Domestic 60.0 6.5 60.0 6.5 192.9 4.5 192.9 4.5
Overseas 2.9 12.4 2.9 12.4 11.4 19.3 10.6 10.5
Office Solutions Total 534.3 6.6 550.8 9.9 1,937.6 9.2 1,905.6 7.4
Domestic 232.9 6.6 232.9 6.6 815.4 3.4 815.4 3.4
Overseas 301.4 6.7 317.9 12.6 1,122.1 13.8 1,090.2 10.6
The Americas 108.4 -3.6 123.3 9.7 419.0 3.4 431.0 6.3
Europe 160.0 11.9 161.6 13.1 578.7 20.6 542.5 13.1
Other 33.0 21.7 33.0 21.7 124.3 23.9 116.5 16.1
- ----------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 34.8 0.7 35.4 2.6 146.5 9.9 145.5 9.1
Domestic 18.0 -11.0 18.0 -11.0 79.3 4.2 79.3 4.2
Overseas 16.8 17.1 17.4 21.7 67.1 17.4 66.1 15.7
The Americas 4.1 -1.4 4.7 13.0 15.5 -19.6 16.0 -17.0
Europe 4.8 -10.2 4.8 -9.3 21.7 12.4 20.6 6.4
Other 7.9 63.4 7.9 63.4 29.7 61.7 29.4 60.0
- ----------------------------------------------------------------------------------------------------------
[Other]
Other 40.4 -0.6 40.4 -0.6 165.7 2.9 164.8 2.4
Domestic 35.0 2.4 35.0 2.4 140.1 2.1 140.1 2.1
Overseas 5.4 -16.7 5.4 -16.7 25.6 8.0 24.7 4.1
The Americas 0.3 -41.5 0.3 -41.5 2.0 28.2 2.0 27.5
Europe 1.9 -26.3 1.9 -26.3 9.8 24.4 9.1 15.7
Other 3.2 -5.7 3.2 -5.7 13.7 -3.4 13.5 -5.0
- ----------------------------------------------------------------------------------------------------------
Grand Total 609.5 5.8 626.7 8.8 2,250.0 8.8 2,216.0 7.1
Domestic 285.9 4.8 285.9 4.8 1,035.0 3.3 1,035.0 3.3
Overseas 323.6 6.7 340.8 12.4 1,215.0 13.9 1,181.0 10.7
The Americas 112.8 -3.7 128.3 9.6 436.7 2.4 449.2 5.3
Europe 166.7 10.5 168.3 11.6 610.3 20.3 572.3 12.9
Other 44.1 24.8 44.1 24.8 167.9 26.2 159.5 19.9
- ----------------------------------------------------------------------------------------------------------
* Excluding foreign exchange impact
A4